Canadian foreign aid groups are hoping for a truce with the federal government after years of tension that some suggest have hurt Canada’s assistance to the world’s poor.

The relationship has been largely on ice since the Conservative government in 2010 introduced sweeping changes without warning to the way it provides support to dozens of international development groups.

Those changes included moving away from long-term funding agreements that many aid groups relied on to a more business-oriented approach including calling for project proposals at set times, and awarding contract-by-contract agreements.

There was also a marked reduction in the government’s discussions with the aid sector as it focused on bigger changes such as reducing the number of countries receiving Canadian aid and obtaining more private-sector involvement.

And the government made no secret it expected aid groups to help advance Canadian foreign policy goals if they wanted taxpayer support.

The government defended the changes by saying it wanted to end the sector’s dependence on tax dollars and ensure that what money was spent supported Canada’s long-term interests.

Two of Canada’s largest foreign aid coalitions released a report this week suggesting the changes have had significant impacts on the sector and on overall Canadian aid efforts.

The Canadian Council for International Co-operation and the Inter-Council Network noted aid groups have not been asked to submit project proposals to the federal government since 2011. Many organizations have struggled to find other funding as the changes caught them by surprise.

Separate figures compiled by CCIC found 16 per cent of Canada’s $5-billion international development budget was channelled through aid groups in 2012-13, with the rest going directly to recipient governments or multilateral organizations such as the United Nations.

The figure was down from 25.8 per cent in 2008-09, and is expected to be even lower when the 2013-14 figures come out as the government cut or failed to spend at least $300 million in its aid budget. It’s unclear how much of that money would have gone to aid groups.

The CCIC-ICN report found that dozens of aid groups have had to cut staff and programming because of the changes, which has “had a negative knock-on effect on the millions of individuals with whom these organizations are working, both as partners and as beneficiaries.”

“And ultimately, it also represents a loss for Canada’s global engagement,” referring to the fact Canadian aid groups are present in more than 140 countries.

In an interview Friday, CCIC president Julia Sanchez conceded there will be no going back to the way things once were between the government and aid sector. “The world is changing and so we have to find new ways of relating to the government,” she said.

Rather, the hope is to work with the government and International Development Minister Christian Paradis to figure out how the sector and the government can best benefit the world’s poorest people.

For the first time in a long time, the feeling appears mutual.

Paradis acknowledged in a speech to aid groups last month “that our relationship has not always been easy,” but said the sector plays an important role in helping those in need. “Together, we have achieved a great deal,” he said. “But we can, and must, achieve so much more. To ensure the sustainability of these results, we must continue to build on our relationship.”

Then, on Monday, the government called for feedback on a draft policy for partnering with Canadian foreign aid groups. While the policy appears to formalize many of the changes that have already been made, the move has nonetheless garnered cautious applause from the sector.

“It is welcome news that Minister Paradis is taking steps to rebuild the relationship with civil society organizations,” said Betty Plewes of the McLeod Group, a group of aid experts who have been particularly critical of the Conservative government.

“Given the damage that has been done to Canadian civil society organizations by the way the Conservative government’s policies have been implemented it will take a concerted effort on the part of the minister to rebuild good will and trust among Canadian international civil society organizations.

Canadian Aid by the Numbers

$134.8 billion: Total official development assistance given in 2013 by the 28 countries measured by the OECD, in U.S. dollars.

$4.91 billion: Total amount of Canadian official development assistance in 2013, in U.S. dollars.

11.4: The percentage decline from the year before in Canada’s aid.

1: Number of other donor countries (Portugal) with a larger percentage decrease.

2009: Last time Canadian foreign aid was so low in dollar figures, which coincided with the height of the economic recession.

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